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Regional Focus: The Opportunity Belt

The Great Lakes – St. Lawrence Seaway is one of the largest trade corridors in the world, spanning over 2,300 miles from the Gulf of St. Lawrence to Lake Superior. The system—primarily used for the shipping of traditional and new cargoes, such as mining products, steel, iron ore, dry bulk and grain—has an economic output of nearly $5 trillion, it sustains over 220,000 jobs in both Canada and the U.S.; produces $34 billion in business revenues and $3.6 billion in transportation cost savings; and provides competitive shipping and direct access to America’s heartland.

But anyone reading the latest trade reports coming out of the region would not be at fault for thinking the market is in a downturn. Sluggish traffic and a slide in iron ore cargoes for the steel industry and limestone shipments for the construction market grabbed the headlines in the local papers last month.

For the month of July, shipments of iron ore on the Great Lakes and St. Lawrence Seaway decreased by 15 percent when compared to July 2015 numbers. According to the Lake Carrier’s Association, which represents 14 American companies operating 56 U.S.-flag vessels on the Great Lakes, shipments were also down by more than 18% compared to the five-year average.

The Association went on to say that shipments from U.S. ports totaled 4.95 million tons in July, a decrease of nearly 14 percent compared to a year ago. Loadings at Canadian terminals dipped 23 percent to 643,000 tons. Year-to-date, the iron ore trade stands at 26.8 million tons, a decrease of 3 percent compared to the same period in 2015. Moreover, year-over-year, loadings at U.S. ports are down by 113,000 tons, while loadings from Canadian ports in the St. Lawrence Seaway are down 743,000 tons (21 percent).

Limestone didn’t fair any better. Shipments on the Great Lakes totaled 3,348,040 tons in July—a decrease of 18 percent compared to a year ago, and July loadings were down 14 percent below the month’s five-year average.

“We are about half-way through the 2016 navigation season and our overall cargo tonnage numbers are down by 11 percent,” says Betty Sutton, Administrator of the Saint Lawrence Seaway Development Corporation.

According to the Saint Lawrence Seaway Development Corporation, year-to-date cargo shipment from March 21, 2016 to July 31, 2016 were down 11 percent over the same period in 2015. The dry bulk category was down 13.4 percent (however, stone and potash were up), iron ore was down 28 percent and coal was down almost 13 percent.

The news isn’t all doom and gloom for commodities, however. “The lack of iron ore and coal has definitely been a contributing factor for this decrease; however traffic continues to be well above the five-year average, keeping our ports and their workforce busy,” says Sutton.

They don’t call the system the “Opportunity Belt” for nothing.

Ports in Minnesota and Ohio are in high demand through the push of agricultural products, such as corn and wheat. Meanwhile, ports in Chicago, Indiana and Wisconsin are benefiting from the movement of steel products and machinery, explains Sutton. Between March and July of this year, steel slabs, which would be categorized under general cargo, were up 214 percent over the same period in 2015, while other general cargo was up 74 percent.

The Port of Cleveland, for instance, has “seen steady growth” in month-to-month tonnage numbers during the 2016 season, says David S. Gutheil, Vice President, Maritime and Logistics. The rise in tonnage, goes hand-in-hand with the success of the Port’s Cleveland-Europe Express liner service. The service, launched by the port in 2014 with vessel partner the Spliethoff Group, directly moves cargo between the Great Lakes and Europe, offering customers savings on inland transits and shorter transit times between the U.S. and Europe.

Gutheil adds, that the Port is seeing “steady volumes of imported steel from Europe,” and an “increased interest in the project cargo market” from customers with a vested interest in moving cargo through the St. Lawrence Seaway.

To that end, the Port of Cleveland has invested in, and recently completed, the “construction of a new 21,000 square foot warehouse. This new facility,” explains Gutheil, was “partially funded through a grant secured through the Ohio Department of Development Logistics program, will be used for trans-load opportunities and increases our inside storage capacity to 320,000 square feet.”

The new warehouse is part of the Port’s ongoing infrastructure investment plan. Earlier this year, the Port commissioned two Liebherr 280 mobile harbor cranes. The cranes are expected to significantly increase the Port’s speed and efficiency.

Beyond the shipping of commodities, ports in the region are also seeing an uptick in tourism—leading to a proliferation in expansions and infrastructure investments.

Resurgence in cruise shipping
“In a time when the world’s industrial giants and cruise ships are all landing in the ports of the St. Lawrence, we have to utilize the strategic location of the Port of Québec to make it the marine destination of choice,” says Mario Girard, President and CEO of the Port of Québec. The deepwater port of the Port of Québec, which sits at the end of the St. Lawrence-Great Lakes trade route, is seeking to rebuild and enhance a number of areas around the port in the hopes of increasing both foot and vessel traffic. But the area likely to get the most buzz will be the expansion of the port’s cruise terminal.

With a resurgence in the cruise market in the Great Lakes region, ports such as the Port of Québec are looking to capitalize on the market, making large infrastructure investments to help meet growing vessel and passenger demand.

Over the last decade, the Port of Québec has seen cruise ship visitor numbers increase—from 55,000 in 2000 to 180,000 in 2014. Operating at full capacity, the Port of Québec will oversee a redesign and expansion of the Ross Gandreault Cruise Terminal and the installation of a mobile terminal at wharf 30 in the Estuary sector.

The hope is that the expansion, which will double the accommodation capacity at the Ross Gaudreault terminal and make way for larger ships, will enable the growth of the cruise market sector to continue, with the port capable of accommodating 400,000 passengers a year by 2025.

The $89.5 million project, called “Québec, A Destination of Choice of the St. Lawrence” will be completed over the next decade.

Meanwhile, over at Port Saint John, the second largest port by tonnage in Canada, cruise activity is expected to increase by 20% this year, with 64 ships calling at the port, bringing in 144,000 passengers and 57,700 crew members to the region, before the season’s end October 28th 2016. Cruise activity at the port represents a $25 million annual boost to New Brunswick’s economy.

Beyond the cruise sector, Port Saint John’s expansion is being driven by a steady increase in containerized cargo. Catering to a diverse cargo base, which includes dry and liquid bulk, break bulk, containers and cruise ships, the traditionally smaller container port is modernizing its facilities to maintain and support increases in both trade and business.

The port’s $205 million, seven-year, West Side Modernization Project—funded by the port, the Canadian federal government and the government of New Brunswick in three equal parts ($68.3 million each)—will see the upgrading and consolidation of the Rodney and Navy Island terminals, enabling the accommodation of larger vessels; and the installation of new operating systems and technology to help enhance cargo-handling capabilities.

Port Saint John says the project, which is slated for completion in seven years, builds on Canada’s commitment to drive economic growth in Atlantic Canada through trade and investment.

Linking the past and future
The Port of Montreal is in the midst of its latest modernization project. The port, which supports 16,000 jobs, generates $2.1 billion in economic spin-offs annually, and in 2015 handled 32 million tonnes of cargo and welcomed 91,000 cruise passengers and crew, will revamp its aging Alexandra Pier and Iberville Passenger Terminal. While the restoration is taking place, passengers will be welcomed at alternative cruise ship terminals, berths 34-35 and 36-37, located east of the Jacques-Cartier Bridge.

The goal is to have a majority of the project done in time to celebrate the 375th anniversary of the City of Montreal’s founding next year. The restoration project is intended to help integrate the pier and terminal into the urban fabric of Old Montreal, provide better access to the St. Lawrence river, and improve conditions to help meet growing cruise ship passenger demand.

“The Port of Montreal is a real treasure for the city, and remains one of our main economic assets,” says Montreal Mayor Denis Coderre. “The restored facilities of Alexandra Pier and Iberville Passenger Terminal will let us extend a magnificent welcome to the tourists and visitors who will come celebrate Montreal’s 375th anniversary with us in 2017.”

The total cost of the project is estimated at $78 million—with the Government of Quebec providing $20 million in funds through the Maritime Strategy – Tourism Component, and the City of Montreal providing an additional $15 million.

The project will include the reconstruction of the ground floor of the passenger terminal, construction of a new observation tower (its completion is expected in 2019), the lowering of the pier and installation of a public place, implementation of a port center, an upgrade to the parking area on the side of the secondary terminal, the addition of a green rooftop terrace, and the introduction of a main access entrance to the pier, further integrating the terminal into the surrounding area.

 

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Great Lakes Regional Focus: Thriving business

Anyone needing reassurance that the shipbuilding sector in the United States is alive and well need look no further than the Great Lakes. While yards along the U.S. Gulf reshuffle business strategies to help during the down oil market, yards along the Great Lakes continue to work on a number of projects, investing in infrastructure and leveraging partnerships to diversify portfolio offerings.

Perhaps the busiest group of all is Fincantieri Marine Group (FMG)—the U.S. subsidiary of one of the world’s largest shipbuilders in the world, Fincantieri. The Fincantieri Marine Group is comprised of three Great Lakes shipyards—Fincantieri Bay Shipbuilding (FBS), Fincantieri Marinette Marine (FMM), and Fincantieri ACE Marine (FAM).

Since acquiring the Wisconsin yards in 2008, Fincantieri has invested well over $100 million to build a shipbuilding group that will provide flexibility for its customers, and provide construction and repair services to both the government and commercial sectors.

Sturgeon Bay, WI-based Fincantieri Bay Shipbuilding (FBS), which is one of the last boat builders remaining in the Bay, has been essentially non-stop the last couple of years. The yard currently has numerous projects under various stages of construction with a backlog that extends through 2018. Most notably, the projects include newbuilds for one of the most active sectors in the country, the ATB market.

This past May, the yard delivered the Articulated Tug Barge (ATB) unit Barbara Carol Ann Moran and the 110,000 barrel ocean tank barge Louisiana to Moran Towing Corporation, New Canaan, CT. The unit was the third delivery to Moran under a 2014 contract. 

The 5,300 HP, 121 ft ATB tug Barbara Carol Ann Moran is certified ABS Class +A-1 Towing Service, +AMS, and is equipped with state-of-the-art navigation and communications technology.

What made the delivery of the unit so impressive was that it was delivered on the exact day called for by the contract—emphasizing FBS’ high standards of meeting customer requirements, building a quality vessel and delivering on time.

Currently, FBS is under contract to construct two ATB tugs and two ocean going tank barges for Kirby Corporation; one ATB tug and one oceangoing tank barge for Plains All American Pipeline, LP; and one ATB tug and one oceangoing tank barge for AMA Capital Partners.

“We continue to be optimistic about the future of the industry we serve,” says, Todd Thayse, Fincantieri Bay Shipyard Vice President and General Manager.

To keep the momentum going, Fincantieri recently purchased the Palmer Johnson facility adjacent to the Bay Shipbuilding yard. Bay Shipbuilding has extensive expansion plans set for the 3-acre site, including the construction of new indoor Fabrication/Erection facilities, an indoor Blast and Coating building, outfitting shops and additional office facilities.

“This recent acquisition of the former Palmer Johnson facility has been well received by the industry and will allow us to pursue several new construction projects, which may include fishing vessels, ferries and landing crafts, while continuing to serve our core ATB market. These purpose-designed buildings will increase our overall output and capacity and improve our ability to meet critical schedules,” says Thayse. 

“We will also be able to move more construction indoors which will allow FBS to further provide cost-effective solutions for our customers,” he added.

Indoor facilities will enable work to be ongoing for both newbuilds and repair work—especially during the winter months when Great Lakes fleet repairs are vital and time sensitive.

Earlier this year, FBS had 17 vessels at the yard undergoing winter repairs well into April. The vessels ranged from thousand-foot long bulk tankers, to medium-sized ships, to tugs and barges. Work included large-scale scheduled maintenance repairs, scrubber installations, repowering and structural steel renewal, in addition to electrical automation enhancement and ABS and U.S. Coast Guard inspections.

Additionally, Keylakes Shipping’s 768 ft bulk carrier John G. Munson is currently undergoing conversion at Bay Shipbuilding. The vessel is the tenth steam-to-diesel, or diesel-to-diesel repowering project that FBS has been awarded since 2009. The freighter, built in 1952 will undergo a complete repower at FBS. It is expected to undergo sea trials in 2018.

Meanwhile, FMG’s two other Great Lakes shipyards are busy constructing the next generation of warships for the U.S. Navy.

Earlier this summer, a keel laying ceremony was held at Fincantieri Marinette Marine, Marinette, WI, for the U.S. Navy’s 17th Littoral Combat Ship (LCS), the USS Indianapolis. The ship is one of six in various stages of construction at FMM, with an additional three ships in long-lead procurement. The yard has already delivered four LCS ships to the Navy—the USS Freedom (the lead ship in the Freedom variant), the USS Fort Worth, the USS Milwaukee and the USS Detroit.

The Lockheed Martin-led team is made up of Fincantieri Marinette Marine, along with naval architectural firm Gibbs & Cox, and more than 500 suppliers across 37 states. The U.S. Navy’s LCS construction program is divided between two groups—the Lockheed Martin team, building the Freedom variant, and the General Dynamics-led team, with Alabama-based Austal USA building the Independence class LCS.

Fincantieri Ace Marine, Green Bay, WI, also has a hand in producing the Freedom variant of the LCS. The yard, which specializes in the design and construction of high-speed coastal intercept and patrol vessels, most notably the builder of the Response Boat-Medium (RB-M) for the U.S. Coast Guard, produces the aluminum superstructures and additional aluminum components for the class.

To top off FMG’s three shipyards success, all three received the annual “Excellence in Safety” award from the Shipbuilders Council of America earlier this year. The award recognizes a shipyard’s commitment to safety, and the hard work and dedication put forth from shipyard employees.

The Great Lakes Group Eyes Expansion, Partners with Damen
FMG isn’t the only regional player seeking to further develop. This past June, the City of Cleveland authorized the sale of property adjacent to the Great Lakes Towing company headquarters. The acquisition of the property will enable the Great Lakes Shipyard, part of The Great Lakes Group, to operate at full capacity, all year round.

The expansion will include a 68,000 square foot facility that will accommodate a state-of-the-art 770-ton mobile Marine Travelift crane—the largest on the Great Lakes, and third largest in the world.

Great Lakes Group says that with the new facility in place, the Great Lakes Shipyard will be able to continuously provide all services for new vessel construction, as well as custom fabrication, ship maintenance and repairs.

Part of the services Great Lakes Shipyard will offer are those required for Subchapter M. Under Subchapter M regulations, towing vessels greater than 26 ft, or any vessel type moving dangerous or hazardous materials, must obtain a Certificate of Inspection documenting: Drydock inspection; Internal Structure Exam; Annual Inspection and Surveys; and Machinery and Electrical.

Stan TugboatJust last month, the yard kicked off construction for the first Damen Stan Tug 1907 ICE. The tug is the first in a series of ten being built in compliance with the new Subchapter M regulations. The tugs are being built for The Great Lakes Towing Company (the Towing Company).

The tugs will measure 65 ft x 24 ft x 9 ft and will be powered by two MTU 8V4000 M54R engines generating 1,000 hp at 1,600 rev/min.

“This new construction program is further evidence of the innovative spirit the Towing Company has always embraced since its founding over 117 years ago, and reflects the commitment we have to our customers and the entire Great Lakes/St. Lawrence Seaway marine transportation industry,” says Joe Starck, President of the Towing Company.

Under the construction program two new harbor tugs will be introduced each year for the next five years—helping to stabilize operations and improve day-to-day business, assures Starck.

“The tugs,” he added, “will be ideal for the long-term sustainability of our harbor towing activities, and provide our customers with an even greater level of reliability, performance, and safety, across our entire Great Lakes service network.”

The Great Lakes Towing Company’s fleet provides ship assist, cargo transportation and logistics, ice breaking, and emergency assistance for every kind of vessel, barge and marine structure on the Great Lakes-St. Lawrence Seaway.

The Damen Stan Tug 1907 ICE are also the first tugs to be built in the U.S. under Damen’s Technical Cooperation program with Great Lakes Shipyard. The agreement, which was entered into at last year’s Workboat show, authorizes the Great Lakes Shipyard as an official builder of Damen designs for the next five years.

Burger Boat’s diverse portfolio
Since 1863 Burger Boat Company, Manitowoc, WI, has done everything in its power to meet the needs of its growing customer base. The boat builder, which has delivered countless vessel types in the range of 50 ft to 200 ft in length, implements what it calls a “lean” philosophy to its business practice, ensuring procedures are performed and completed on time, and vessels are delivered to customers on budget.

A builder of steel and aluminum vessels, Burger builds everything from yachts to passenger vessels, such as the 98 ft passenger vessel Chicago’s Classic Lady for Chicago’s First Lady Cruises—and patrol to research vessels, such as the 78 ft research vessel Arcticus which was delivered to the U.S. Geological Survey in 2014, just to name is a few.

Last year, Burger delivered a tour boat to Chicago-based Wendella Boats. The 340- passenger Lucia is an 89 ft steel vessel that was designed by Timothy Graul Marine Design, Sturgeon Bay, WI.   The steel boat is certified USCG Subchapter K, and is powered by two Caterpillar C12 main engines and features two Northern Lights generators. 

Most recently, Burger began construction on a custom 103 ft 6 in x 26 ft 5 in full displacement steel and aluminum Explorer Motor Yacht for an unnamed owner.

The expedition style motor yacht has a steel hull and aluminum superstructure. The vessel, designed by DeBasto Design, Miami, FL, will be launched Spring 2017. The ABS class yacht will be powered by two Cat C-18 ACERT main engines, and will be able to reach a cruising speed of 12 knots.

Fraser faces OSHA fine
Located in Superior Wisconsin, on the St. Louis Bay of Lake Superior, Fraser Shipyards, part of the Fraser Industries group which also includes boat builders Lake Assault Boats, provides full shipyard services from its sixty five acre site, featuring two dry docks and approximately 2,200 feet of berthing space. Since 1890, Fraser Shipyards has been a prominent fixture in the Twin Ports of Duluth and Superior, serving the Great Lakes shipping community. Most of its current 150 workers, 75 percent of which are structural welders, equipment operators, fitters and pipe fitters, are third generation employees for the company.

That kind of longevity and loyalty from workers can serve as a testament to Fraser’s commitment to the industry, the community and its employees, but recent findings have raised questions about the yard’s safety culture.

Last month, the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) announced that sampling results taken during a recent retrofit determined that 14 of Fraser Shipyards workers were exposed to heavy metals and had lead levels 20 times higher than the exposure limit.

According to OSHA’s Assistant Secretary of Labor, Dr. David Michaels, “Fraser Shipyards accepted a contract with a very low profit margin and penalties for delayed completion, but could not meet the schedule without endangering its workers.”

That contract, from Interlake Steamship Company, Middleburg Heights, OH, was for the modernization of the Herbert C. Jackson. OSHA stated in its report that Fraser Shipyards’ management was aware of the presence of lead and asbestos throughout the 1959 built vessel. The ship arrived at Fraser December 2015 for a six-month retrofit project and was required back in operation for the summer iron ore shipping season.

In a statement, James Farkas, President and Chief Operating Officer of Fraser Industries, said “We are a family-owned company that has been in Superior for 126 years. We see all of our employees, laborers and contractors as part of the family.”

He added, “We take the health and safety of our people and our community seriously. We acted to protect our people as soon as we learned of the problem. We have worked with all of our employees, laborers and contractors to ensure their health by bringing in medical experts, as well as the highest levels of testing, protective equipment and safe operating procedures. We strongly disagree with OSHA’s statement that any of the issues were caused or worsened by business or profit motivations.”

The agency cited 14 willful egregious health violations for each instance of overexposing a worker to lead, and cited five additional willful violations for failing to conduct monitoring to assess lead exposure and failing to implement a lead compliance or respiratory program.

Additionally, OSHA issued 10 serious violations to the company, and placed Fraser Shipyards in its Severe Violator Enforcement Program (SVEP). For companies on the list, mandatory follow-up inspections become the norm.

Since the findings, Fraser has taken steps to help mediate the matter, and protect its employees. According to a statement, as soon as the management learned of the high lead levels it halted work on the Herbert C. Jackson. Fraser Shipyards also went on to engage medical experts from the region’s two leading hospitals, and industrial safety experts from the International Brotherhood of Boilermakers union to advise the company and oversee health testing. And it purchased state-of-the-art safety gear and equipment to protect workers.

Additionally, Fraser engaged medical professionals, OSHA and union officials to develop and implement new safety procedures.

“We appreciate their responsiveness to getting this issue fixed and taking care our members,” said Mark Garrett, Director of Health and Safety Services for the International Brotherhood of Boilermakers, the union that represents workers at the yard. “We don’t get many employers that step up like they did. They were straightforward, asked for our help and put in place our recommendations for safety.”

In total, Fraser could face close to $1.4m in OSHA penalties.

 

Navy accepts delivery of LCS 7

AUGUST 16, 2016 —The Navy accepted delivery of the future USS Detroit (LCS 7) in a ceremony at the Fincantieri Marinette Marine shipyard, Aug. 12. Detroit is the eighth littoral combat ship

Tugs & Barges: Evolving with the market

Engineering company GTT has more than 50 years’ experience in the design of membrane cargo containment systems, but one project underway right now in Orange, TX, is quite unique. That’s because it’s the first Liquefied Natural Gas (LNG) bunker transport barge in the United States.

One of 118 GTT projects currently underway worldwide, the tank barge is taking shape at Conrad Orange shipyard, Aziz Bamik, General Manager of GTT North America, told delegates at Marine Log Tugs & Barges 2016 Conference & Expo held last month in Seattle. While Conrad has decades of experience building all types of tank barges—dirty oil, products, chemicals, and LPG—this is the first time that it is building a vessel with one of GTT’s Mark III Flex membrane tank technology. Following a certification process, Conrad signed a license agreement with GTT back in January 2015 to construct the Mark III Flex.

Designed to operate in inland waterways, bays, harbors, and U.S. coastal waters, the new 2,200 m3 tank barge will be used to refuel TOTE’s two 3,100-TEU LNG-powered containerships. The barge will travel about a mile from its mooring facility to fuel the two Orca Class containerships, which operate out of the Port of Jacksonville, FL to San Juan, PR. The barge is designed not as an Articulated Tug Barge unit, but rather to be towed by hawser wire, pushed or maneuvered by hip, says Bamik.

In anticipation of increasing demand for LNG as a marine fuel, Bamik also mentioned to the conference audience that GTT North America was working with Conrad on a larger Articulated Tug Barge unit that will have a capacity of 4,800 m3, with two GTT Mark III Flex Cargo Containment System tanks. The 319 ft x 62 ft barge would have cold LNG delivery with onboard reliquefaction.

COMING DEMAND FOR LNG
The interest in LNG as a marine fuel seems to have waned in the U.S. with the drop in the price of oil. As of today, five vessels burn LNG as fuel in the Jones Act market. Besides TOTE’s two containerships, the Harvey Power, the third in a series of six dual fuel Platform Supply Vessels for Harvey Gulf International Marine, New Orleans, recently entered service in the Gulf of Mexico under charter for Shell. Next year, Crowley Maritime will take delivery of two Commitment Class Container Roll-on/Roll-Off (CONRO) ships for Puerto Rico. Those are being classed by DNV GL. All the other Jones Act LNG fuelled vessels are being built to ABS class.

Additional LNG Ready classed tonnage delivered or being built by General Dynamics NASSCO in San Diego and Philly Shipyard Inc. in Philadelphia could grow the LNG-fueled Jones Act fleet if converted in the future. TOTE is also converting its two Orcas Class RO/RO ships for Alaska service in Singapore.

Globally, there are about 77 gas-fueled vessels in operation and another 79 confirmed newbuildings as of March 2016, according to Anthony Teo, Technology and LNG Business Development Manager, North America, DNV GL. “There are about another 50 LNG Ready vessels have been contracted,” Teo told delegates. He said that DNV GL estimates there will be 360 LNG fuelled vessels in operation by 2020.

The widespread adoption of LNG as a fuel, Teo pointed out, was is being hindered by the lack of gas fuel bunkering facilities in ports.

A panel of naval architects, liquefied natural gas reliquefaction technology providers, and regulators discussed more in-depth the current hurdles hindering the expansion of the adoption of LNG as a marine fuel for the tugs and towboats in the Jones Act market.

Panelist Rafael Riva, Marine Business Development Manager, ECA, Lloyd’s Register pointed out that the technology was well proven in Europe. The first LNG tugs, for example, were built in Turkish shipyard Sanmar for Norway’s Bukser og Berging AS and have been in service for Statoil AS since 2014. The DNV GL class tugs are equipped with lean burn gas engines from Rolls-Royce and Rolls-Royce azimuthing thrusters.

The LNG powered propulsion systems does require more space. The Shearer Group’s Engineering Manager Joshua Sebastian, PE, mentioned the complexities of integrating the necessary fuel tank, piping, and control systems required to burn LNG on the smaller towboat platform. Sebastian’s company, naval architectural firm The Shearer Group, has been contracted for the conversion of a 65-foot-long conventional diesel-powered towboat to burn LNG.

LNG-powered tugs also require small volumes of fuel with a dedicated delivery solution. Fueling can be accomplished either via tanker trucks, shore LNG storage tanks, portable gas fuel tanks or ship to ship or barge to ship transfer.

Panelist John Dwyer, Officer in Charge, Marine Inspection/Chief, Inspection Division at USCG Sector Puget Sound, provided the regulatory view on the development of LNG as a marine fuel in the U.S.

The U.S. Coast Guard has issued a number of policy letters and guidance on the design and operation of ships using LNG as a marine fuel, as well as ships and facilities transferring LNG as fuel. The U.S. Coast Guard has addressed designs and facilities on a case-by-case basis.

Waller Marine’s Beau Berthelot pointed out that his company has worked on a number of refueling solutions. Waller Marine, for example, has been granted an Agreement in Principle (AIP) by ABS for a new liquefied natural gas (LNG) and regasification articulated tug barge concept. The vessel has the ability to load LNG from existing LNG terminals, liquefaction facilities or traditional LNG carriers and transport the LNG to existing tanks, traditional LNG carriers, trucks or marine vessels using LNG as a fuel. The barge also is equipped for regasification of LNG directly to a pipeline or to a power plant. An additional feature will be the use of natural gas as a fuel in the dual fuel engines of the tug to drive the tug-barge unit.

The benefit of the LNG Articulated Tug and Barge Regas Vessel (ATB RV) is that it allows LNG to be moved and delivered more efficiently on a small-scale basis in locations where large LNG infrastructure would be cumbersome, costly and time consuming.

Another possible solution for small footprint applications mentioned by panelists David Grucza, Director, Drilling and Marine U.S., Siemens, and Michael Walhof, Sales Director, Distributed LNG Solutions, Dresser-Rand, a Siemens company, was Dresser-Rand’s LNGo system is a modularized, portable natural gas liquefaction plant. This point-of-use production plant is a standardized product made up of four packaged skids: a power module, compressor module, process module and a conditioning module. The natural gas consumed powers the unit and is also used as the process refrigerant to eliminate complexity and maintenance.

SHIPYARDS CONTINUE TO BE BUSY
Meanwhile, U.S. shipyards continue to book orders for conventionally powered harbor tugs and Articulated Tug Barge (ATB) units. The continued orders for ATBs, in particular, are in response to transport refined products in the U.S.

Just last month, Gunderson Marine, Portland, OR, secured an order to build two 82,000 bbl, 430 foot-long oceangoing tank barges for Harley Marine Services, Inc., Seattle.  The tank barges will be part of an ATB unit.

Gunderson last built a barge for Harley Marine in 2009.  Construction on the barges will begin this year, with delivery of both vessels set for the second half of 2017. 

As of press time, Harley Marine Services was negotiating with a Gulf Coast shipyard for the construction of the ATB tugs that would be coupled to the tank barges being built by Gunderson.

Over the past nine months, Gunderson Marine has delivered two 578 ft ATB oceangoing barges for chemical and oil service for Kirby Offshore Marine.

For its tank barges, Kirby Offshore Marine took delivery of two 10,000 hp ATB tugs from Nichols Brothers Boat Builders, Whidbey Island, WA. Speaking at Marine Log Tugs & Barges 2016, Nichols Brothers Boat Builders President & CEO Gavin Higgins said that ATBs enjoy several cost advantages over coastal tankers when it comes to moving refined products. Crew costs are far less, nine crew vs. 18 crew. Additionally, ATBs are more ship shape, offering speed advantages over towed tank barges.

The shipyard has also signed a contract with Kirby for two line haul tugs, as well as two 8,000 hp ATB tugs based on a design by naval architect Robert Hill of Ocean Tug & Barge Engineering. The companion tank barges are being built by Vigor.

FINCANTIERI BAY SHIPBUILDING
Fincantieri Marine Group’s Fincantieri Bay Shipbuilding (FBS), Sturgeon Bay, WI, has delivered the Articulated Tug Barge unit (ATB) Barbara Carol Ann Moran and the 110,000-barrel ocean tank barge Louisiana to Moran Towing Corporation, New Canaan, CT.

The 5,300-HP, 121-foot ATB tug Barbara Carol Ann Moran is certified ABS Class +A-1 Towing Service, +AMS, and is equipped with state-of-the-art navigation and communications technology. The Louisiana is 468 ft x 78 ft.

The ATB unit will work the East Coast of the United States and the Gulf of Mexico.

This is the shipyard’s third delivery to Moran under a 2014 contract, with a tank barge delivered in May of 2015, and another ATB—the tug Leigh Ann Moran and tank barge Mississippi—delivered December 1, 2015.  

VANE BROTHERS SERIES AT ST. JOHNS
Vane Brothers, Baltimore, MD, continues to invest in new tonnage. It has a long running newbuild program at Chesapeake Shipbuilding in Salisbury, MD, where it is constructing a series of 3,000 hp ATB tugs and has now added the second of eight 4,200 horsepower tugboats from St. Johns Ship Building, Palatka, FL.

The new tug, Hudson, is the second of Vane’s Elizabeth Anne Class, under construction at St. Johns Ship Building. Lead vessel of the class, the Elizabeth Anne, was delivered in January, while the third in the series, the Baltimore, is set for completion this summer.

The new tug will be paired with the Double Skin 601, the first in a new series of 55,000 bbl barges and will be followed later this year by the Double Skin 602, both built by the Conrad Deepwater South Shipyard in Amelia, LA.

“Our ongoing fleet construction program ensures that we have state-of-the-art equipment available to service all of our customers’ needs with the utmost safety and efficiency,” says Vane Brothers President C. Duff Hughes.

Designed by Frank Basile, P.E., of Entech Designs, LLC, Vane Brothers’ Elizabeth Anne Class tugboats are close cousins to the Basile-designed Patapsco Class tugboats, 15 of which were produced between 2004 and 2009.

Measuring 100 feet long and 34 feet wide, with a hull depth of 15 feet, the model bow Hudson is powered by two Caterpillar 3516 Tier 3 engines, each generating 2,100 horsepower at 1,600 rev/min. Two John Deere PowerTech 4045, 99 kW generators deliver service power to the boat, while a third John Deere 4045 teamed with an Allison transmission drives the chain-driven Intercon DD200 towing winch. The Elizabeth Anne also has Reintjes marine gears supplied by Karl Senner, LLC, Kenner, LA.

The Hudson features the latest in solid-state, Simrad electronics and handsomely appointed, mahogany upper and lower pilothouses, as well as spacious accommodations for up to seven crew members.

Meanwhile, the Double Skin 601 is configured and outfitted in a nearly identical fashion to the most recent 55,000 bbl Vane Brothers barges that were delivered in 2015 by Indiana-based Jeffboat Shipyard. Like them, the Double Skin 601 is equipped with an 8,600 BTU thermal fluid heating system, vapor control system and cargo tanks coated with International Interline 994 Epoxy Novolac. However, the Double Skin 601 has a raised forecastle bow design, which provides additional reserve buoyancy.

The DS-601 and its sister, the DS-602, are both fitted with two fixed boom pedestal cranes each, Model F1-65, with a 65-foot boom length supplied by Techcrane International, Covington, LA.

Primarily tasked with towing petroleum barges engaged in the North Atlantic coastwise trade, the Hudson has joined the Elizabeth Anne among more than 20 vessels that are part of Vane’s Delta Fleet, based in Philadelphia. The DS-601 is also a new Delta Fleet member.

NEW TUG FOR SEA VISTA
In early April, BAE Systems Southeast Shipyards, Mobile, AL, launched the first of two 12,000 hp ATB tugs for Sea-Vista ATB, LLC.

One of the interesting features of the tug M/V Sea Power is that it has two independently controlled and operated hydro-dynamic Van der Velden Barke rudders. Independent Proportional Steering will allow the rudders to be actuated either independently or synchronized. The rudders were supplied by Dutch company Van der Velden Marine Systems (VDVMS) in conjunction with its U.S. representative Ships Machinery International, Inc. (SMI).

Van der Velden says that tank tests showed that rudder design was extremely effective for this type of vessel. This ATB tug will have enhanced maneuverability and excellent course keeping stability. The efficiency provided by this high technology rudder solution will result in significant savings over the life of the vessel.

The 43m x 14m ATB tug, with a draft of 6.75m, is designed by Seattle-based Guido Perla and Associates, Inc. (GPA). The tug’s power is supplied by two 4,640 kW main engines and three 250 kW main generators, with a standby emergency generator of 150 kW. The vessel uses a pin connector system between the tug and the barge and fully complies with ABS Under 90 m Rules, Maltese Cross A1 AMS ACCU Towing Vessel, SOLAS, USCG Subchapter I.

“We are pleased that our client selected this state of the art rudder system for their new vessel,” said SMI Vice President Arthur Dewey, and “we are confident that their faith in Van der Velden rudders will be rewarded over the long haul.” Van der Velden reports that the Sea Power is the only vessel of its kind in the U.S. at present time.

The tug will have exceptional maneuverability, with two independently controlled and operated hydrodynamic Van der Velden Barke rudders. Independent Proportional Steering will allow the rudders to be actuated either independently or synchronized.

Van der Velden has done a lot of work to facilitate the installation of these rudders into a hull and worked closely with Guido Perla Associates Inc. and BAE Systems to assure a smooth transition from initial design to final installation.

GPAI Chairman Guido Perla commented, “Van der Velden provided excellent technical support and on time delivery of design documents that helped us develop the engineering and design for the installation of their steering system. Their coordination with our staff was prompt and to the point. We appreciated their support.”

Van der Velden says that the key driver behind the Barke rudder is its innovative and sophisticated progressive high lift design, offering unsurpassed maneuvering and course-keeping performance, as well as smooth operational comfort. The progressively operating flap linkage system is contained in a fully enclosed, grease-lubricated Barke housing. This results in minimum wear on the linkage components and eliminates the problems caused by contact with floating objects.  

Another set of Barke high-lift rudders will be installed on a second ATB tug before this summer.

BARGE FOR PROVPORT
Conrad Shipyard, Amelia, LA, recently delivered a 300-foot long x 72-foot wide rake/box barge with a deck rating of over 6,000 pounds per square foot to ProvPort, Providence, RI, according to naval architect JMS Naval Architects, Mystic, CT. The crane barge design allows for the easy loading and unloading of cargo from ships to the dock or from ship to ship.

JMS Naval Architects, Mystic, CT, engineered and designed the crane barge for the State of Rhode Island that will be used for stevedoring operations at ProvPort Inc.

ProvPort is a nonprofit public-private partnership, formed in 1994, which owns and operates the municipal port of the City of Providence, RI. ProvPort is New England’s premier deep-water multimodal facility for international trade and domestic distribution and one of the busiest ports in America’s northeast.

JMS designed the barge to carry and operate the facility’s 440-ton Liebherr LHM 550 mobile harbor cranes. The barge is ABS classed A1 with notation “Deck Barge,” uninspected and unmanned. JMS also created the technical specification documents to utilize for the solicitation of shipyard bids and provided owner’s representative services during the construction of the barge at Conrad Industries.

The contract was funded by the State of Rhode Island’s Transportation Investments Generating Economic Recovery (TIGER) II grant program award managed by the Rhode Island Commerce Corporation. The grant was created by Congress in the 2010 Transportation Appropriations Act and allowed the purchase and installation of the barge and two high performance harbor cranes. The new stevedoring equipment will modernize and enhance the port’s ability to continue its existing bulk material operations while expanding its capabilities to accommodate container operations; thus alleviating demand on the Port of Boston—the only existing container port in New England. The new crane barge will be critical for the port which has relied on 30-year-old rented crane barges that have been prone to breakdowns and have been out service for prolonged periods. The crane barges are estimated to remove on average 1,000 trucks per week off the northeast corridor highway system—one of the most congested in the country.

NEW HARBOR TUGS FOR BAYDELTA, MCALLISTER
Jensen Maritime, Seattle, is designing tractor tugs for both U.S. East Coast and West operators. One is for Vessel Chartering LLC, a wholly owned dividsion of BayDelta Navigation. The new tug is powered by a pair of 3,385-horsepower Caterpillar 3516 EPA Tier 4 engines and is the third tugboat designed by Jensen Maritime with engines meeting EPA Tier 4 requirement.

The tug was designed without ballast tanks, eliminating the need for ballast water discharge and therefore ballast water treatment systems. To maintain proper trim, the vessel will transfer fuel, as necessary.

The tug is being built by JT Marine Inc. shipyard in Vancouver, WA, for delivery in second quarter 2017.

Jointly developed by Vessel Chartering and Jensen, the 110-ft x 40 ft tug has the ship assist and escort capabilities of smaller harbor tugs, while delivering the improved towing performance and increased range of larger ocean-going tugs.

The design offers the flexibility to support ship escorts, assists and towing, with the escort capability being enhanced to provide support for assisting the large, 18,000 TEU containerships expected to make an increasing number of West Coast port calls.

With an electrically powered, double drum tow winch aft by Rapp USA and an electrically powered hawser winch forward by Markey Machinery as deck machinery, the vessel will be capable of a 93-to-95 short-ton bollard pull. Both winches’ electrical power will remove any chance of a hydraulic oil spill on deck.

The tug is designed to carry up to 123,000 gallons of fuel, 4,300 gallons of fresh water, and up to 4,500 gallons of urea, which is used in the main engine exhaust Selective Catalyst Reduction (SCR) treatment system used to meet EPA Tier 4 emissions requirements.

On the East Coast, McAllister Towing, New York, NY, has contracted with Horizon Shipbuilding, Inc., Bayou La Batre, AL, to build it two new 100 ft x 40 ft new escort tugs.

The tugs will be powered by 3516E EPA Tier 4-compliant Caterpillar engines with Schottel SRP4000FP propulsion units producing 6,770 hp and 80 metric tons bollard pull.

The tugs will be the 31st and 32nd tractors and the first Tier IV tugs in McAllister’s fleet.

They will be ABS classed Maltese Cross A-1 Towing, Escort Service, FiFi 1 and Maltese Cross AMS.

The hull has been designed by Jensen Maritime for enhanced ship docking abilities in addition to direct and indirect escorting and the tugs have been designed and simulator tested to assist new Post-Panamax and Ultra-Large Vessels.

Towing machinery will include a Markey asymmetric render-recover winch on the bow and a Markey tow winch with a spool capacity of 2,500 ft of 2¼ in wire on the stern.

MARCON BROKER FOR NEW DESIGN TUG
Purple Water Ltd. has appointed Marcon International, Inc., Coupeville, WA, as exclusive broker to handle the shipyard licensing for construction of an innovative new tug in the Americas.

Called the Giano tug, the compact double-ended tug has a high displacement tunnel hull form, two large structural keels and a straight-line controllable pitch thruster configuration designed and built solely for ship handing.

With intuitive in-line handling controls, the tug can produce 55 tonnes (70 tonnes) of bollard thrust and pull in all directions at full power with true 360 degree maneuverability, while maintaining a 0 degree list – plus a side-stepping speed of 7 knots – from full ahead to full speed sideways in 10 seconds.

The tug works equally well from the bow or stern and is fitted with 75 tonne escort winches fore and aft.

The design is claimed to has the highest stability numbers of any escort tug afloat, not only in its own 24 m compact class, but also compared with the 32 m escort terminal class.

Two separate engine rooms, a separate generator room and a double hull with integral “W” heavy duty fendering and patented underwater fenders provide a high level of safety, and allow the tug the unique capacity to side thrust and push at full power without listing, while assisting vessels in confined spaces

The Gianotug design is patented over 40 countries.

After four years of research and development, the first tug of this class, is now available in Italy for shipowners and shipyards interested in licensing and building the design to inspect and experience a “hands-on” demonstration of the tug’s capabilities.

Built by Chinese shipbuilder Guangdong Bonny Fair Heavy Industry, the 25.75 m x 13.02 m x 5.20 m depth / 5.30 m Giano is powered by twin 1,678 kW CAT 3512C-HD diesels developing a total power of 4,562 HP at 1,800 RPM.

A Schottel SRP-3000 azimuthing drive with a controllable pitch prop is mounted in a straight line at each end, with the tunnel hull specifically designed to eliminate propeller interference.

Topside access and ultra-short shaft lines allow for main engine removal in a few hours.

The U.K. flagged Giano is classed LR +100A1, Escort Tug, FiFi-1 (2,400 cu.m/h) with water spray, Unrestricted – MCA WB Area 1 (up to 150 miles from safe haven). While this first vessel has a 55 tonnes bollard pull, the unified design allows for both 55 tonnes and 70 tonnes bollard pull versions to be built.

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